Cost and pricing were the biggest hurdles to closing a sale, according to 63% of contractors.

Homeowners looking into solar are facing higher estimates in 2026 after the 30% federal tax credit expired. In the first half of the year, the typical 12-kilowatt system cost $30,712 upfront, according to EnergySage's Home Electrification Marketplace Report.

Financing is also shifting quickly, while battery storage continues to be a hard sell even as homeowner interest grows.

Key takeaways

EnergySage's latest Home Electrification Marketplace Report pointed to a longer expected payback period for homeowners, rising to 10.9 years from 10.1 years, according to PV Magazine.

Between January and June, the period covered by the report, median quoted home solar prices climbed to $2.57 per watt from $2.49 per watt in the second half of 2025.

Standalone solar was largely steady and even fell 1% year over year, while quotes for solar-plus-storage systems rose nearly 5% to $2.55 per watt before battery costs, reflecting the added labor and complexity of installing both together.

For homeowners trying to avoid large upfront costs, solar leases can offer monthly savings of hundreds of dollars. EnergySage found that prepaid leases were modeled at 39% below cash purchases on an effective cost-per-kilowatt-hour basis.

EasyHome's free explorer tool can help you find potential savings from vetted installers in your area.

More background

Price differences narrowed during the study period. As pv magazine noted, the average highest quote fell to $2.94 per watt, while the average lowest quote increased to $2.38, cutting the spread to $0.56 per watt from $0.72 per watt in the second half of 2025.

Labor pressures were widespread too. Nearly 74% of contractors surveyed said hourly labor rates had increased, and labor accounted for 22% of total installed system costs, compared with 36% for equipment. When asked what is driving demand, about 70% pointed to lower electric bills. Still, 63% said cost or pricing was the biggest barrier to making a sale.

Quotes also varied sharply by state. Illinois had the highest median price among the 10 largest residential solar states at $3.07 per watt, while Texas was lowest at $2.00 per watt, a difference of 53%.

Interest in batteries remained high, but fewer proposals included them. Although 76% of shoppers said they were interested in storage, only 31% of solar quotes included it, down from 39% in the second half of 2025. Price was again a factor, according to 64% of contractors surveyed.

What can be done?

The financing mix shifted noticeably toward third-party ownership. Prepaid power purchase agreements were modeled at an effective cost per kilowatt-hour 57% below cash purchases, and the share of installers offering those products through EnergySage rose from about 14% in January to 41% by the end of June.

Installers are also looking for growth in adjacent services: 58% said EV charging, HVAC work and electrical upgrades are among their top strategies.

Meanwhile, median quoted solar loan rates held at 7.5% for the third straight reporting period, even as median loan terms shortened from 25 years to 20 years.

If you're considering solar, EasyHome's free explorer tool can help you compare vetted local installers and decide whether a lease, loan or cash purchase best fits your roof and budget. It can also help you look at backup battery options so you can maximize long-term savings and keep power flowing when the grid goes down.

Where can I learn more?

Solar buyers across the country are weighing competing bids, lease offers and payback timelines.

• Across the U.S., homeowners found financing kept solar viable after the 30% tax credit disappeared.

• In western Iowa, a homeowner considered a $30,362 solar bid before net metering rules tightened.

• One DIY buyer found that a $24,000 setup could still pay for itself in 6.5 years.

• In Arizona, a homeowner received a $35,000 quote and was told $2.59 per watt was inexpensive.

• A shopper was advised to steer clear of a $44,000 9.88-kW quote.